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Russian President’s aide Igor Shuvalov has explained why Gazprom will have no financial problems with its expansion to the EU.
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June 01, 2007
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No Higher Taxes for Gazprom
The Russian government is not going to raise taxes that would affect Gazprom, the president’s aide said Thursday ahead of the G8 summit. Meanwhile, the Greek president has announced plans to build a new gas pipeline to the EU to repeat the route of the Burgas-Alexandroupolis gas main.
The president’s aide Igor Shuvalov on Thursday voiced Russia’s position on some pressing issues ahead of the G8 summit in Germany. His comments have shown that Russia is mostly interested in energy issues, and precisely, Gazprom’s expansion to the EU and United States.

Tax burden on Gazprom will not be increased at least until 2009, Mr. Shuvalov said. Russia’s economic and finances official has been pressing for an increase in mining operations tax for the gas industry. The presidential advisor, however, announced the issue was settled in the 2008-2010 draft budget which is now under consideration at the Duma.

Elsewhere, Russian Industry and Energy Minister Viktor Khirstenko said on Thursday that the German summit may discuss the idea of a global gas organization to control gas pricing for Europe. Igor Shuvalov, however, retorted that Moscow does not support the gas cartel idea. “Russia does not speak about a gas OPEC,” he explained. “We speak about a machinery to coordinate activities on the gas market.”

Russian officials are most likely to throw away the gas OPEC plan in return for other benefits such as access to the European market for Gazprom.

Prime Minister Mikhail Fradkov confirmed Gazprom’s willingness to expand to the EU at talks with Greek President Karolos Papoulias. The Greek leader, in his turn, suggested stretching another gas pipeline to repeat the route of the Burgas-Alexandroupolis project, something that Gazprom views as expansion of its southern transit route.

www.kommersant.com

All the Article in Russian as of June 01, 2007

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